Amazon to build its own air cargo fleet

Online retailer Amazon plans to bring in 20 Boeing 767 jets to enhance its home delivery fleet. The company consider to lease these jets to creates own cargo facility which in turn will help them to rely upon external carriers like FedEx and UPS.

An Amazon insider reportedly said to a local newspaper in Australia that the company is seeking assistance from many aircraft leasing companies to acquire new jets. Various levels of talks are being piloted with Air Transport Service Group (ATSG), Atlas Air and Kalitta Air. Amazon intends to start the air cargo operations by the first month of the next year. A leasing executive commented that the company was very serious in rolling the ball and the whole industry is looking forward ahead at the air cargo venture of Amazon.

With the induction of the new air cargo facility, Amazon would be in a position to deliver for the outside companies as well. Doing this, Amazon will be locking horns with United Parcel Service and FedEx. Other suppliers and retailers would be allowed to store their merchandise in Amazon warehouses, before the distribution process starts.

Amazon’s plans to bring in delivery jets is considered by many as another experiment like what they did with delivery drones. Amazon’s decision to step into delivery business is mainly because of the policies of third party carriers. The company believes that these delivery companies are being a bottleneck to their progress.

Having said, the biggest obstacle the online giant is going to face is the sourcing of these cargo planes. Amazon’s first preference is Boeing’s 767, which is very scanty in number and would not be easy to find in the market. Another problem that the company will face is that it won’t have an air operator certification. Which, in turn would have them to bring in some cargo plane lessors in board.

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